Japan: Crypto-Coincheck plans IEO

Coincheck, a major Japanese crypto exchange, is considering opening an IEO (Initial Exchange Offering) platform. This could then be used to raise capital through utility tokens.

The platform

Coincheck was acquired by the Japanese financial services provider Monex Group in April 2018 and indicated in a recent public announcement that it intends to open an IEO platform, Cointelegraph Japan reported on 22 August.

According to the report, Coincheck has started investigating opportunities for capital procurement through utility tokens. The stock market claimed that IEOs are becoming increasingly popular worldwide and more reliable as a method of raising capital.

In a public statement, Coincheck said that the stock market targets this offer to companies and projects that do not raise capital through tokens and already have content and are expanding their business. Coincheck added that the opportunities under the rules and guidelines of the Japanese Financial Services Authority (FSA) would be considered.

IEO vs ICO

The big global stock exchange Binance explains that an IEO is a capital raising method managed by an established and proven stock exchange. Unlike an initial coin offering (ICO), in which the capital is raised by a project team itself, an IEO is executed on the platform of a well-known exchange to raise capital. An example of this is Binance’s token service, called Binance Launchpad.

The ICO boom in 2017 has proven to be a high-risk field for those wishing to participate in new blockchain token projects. Now, IEOs have gained momentum. According to a report by The Block, up to 12 major global crypto exchanges announced in 2019 IEO platforms, including OKEx, Huobi and Bittrex.